Is this why the rich get rich and the poor stay poor? indy100 indy100 Indy100 logoNewsletter sign upRegister/Sign inTop 100NewsViralPoliticsCelebritiesScience & TechVideoWishlistWishlistBooksFashion & BeautyFood & DrinkHome & GardenKidsSports & FitnessTechTravel & OutdoorsMoreScience & techVideoConversationsSportIdentitiesLifestyleShowbizTVSearchxNews
Is this why the rich get rich and the poor stay poor
Original ArticleBen Chu (editedI100 StaffJan 20, 2015 According to The Independent's economics editor Ben Chu, what would later be championed by the free-market right was actually first spun as a joke by one-time circus cowboy and humourist Will Rogers. At a time when the US was in the midst of the Great Depression he said: Money was appropriated for the top in hopes that it would trickle down to the needy. Trickle-down economics is the idea that reducing the tax burden on the wealthiest is good for the least wealthy, as the rich see their disposal incomes increase and therefore spend more on services that companies can reinvest and create new jobs. It's also completely wrong, claims a report out this week from former US Treasury secretary Larry Summers and shadow chancellor Ed Balls. The report, from the Centre for American Progress, states: Left to their own devices, unfettered markets and trickle-down economics will lead to increasing levels of inequality, stagnating wages, and a hollowing out of decent, middle-income jobs. According to Summers and Balls, the only thing tax cuts for the rich create is a growing income gap, as the wealthiest members of a society do not necessarily 'invest' in it, they could just save their money for example. This graphic helps explain the idea versus the reality. Once you realise that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are: a simple upward redistribution of income, rather than a way to make all of us richer.Ha-Joon Chang, economics professor at Cambridge UniversityKeep reading...Show less US actors Reynolds and McElhenney to be honoured by people of Wales
How will the next prime minister and Tory leader be chosen
Ellis-Bextor to get the party started at new show for Edinburgh s Hogmanay
Please log in or register to upvote this article Top 100
Man endures ' 29 hour flight' with screaming kids for the entire trip
flightplanechildflightOct 12, 2022 How likely is it that Boris Johnson could be prime minister again
Boris Johnsonboris johnsontory leadership contesttory leadership racetory leaderTory leadershiptory leadershipConservativesconservative partyConservative Partyconservative leadership raceconservativesBoris Johnson9h The Rocky career of Dwayne Johnson
Dwayne Johnsonthe rockblack adamwweDwayne Johnson7h Lorraine Kelly hits out at Madonna' s ' boiled egg' face
madonnamadonnalorraine kellygmbshowbizplastic surgeryOct 11, 2022 Elon Musk is actually selling a ' Burnt Hair' fragrance
elon muskthe boring companyperfumeelon muskburnt hairOct 12, 2022 Jon Stewart slams Arkansas attorney general for her ' anti-trans law'
lgbt+transgenderlgbt+jon stewartapple tvarkansasus newsnewsOct 11, 2022 Just Stop Oil protester praised for ' great' explanation of soup stunt
just stop oilvan goghprotestclimate activistsjust stop oilOct 19, 2022 Couple spark debate for ' scandalous' wedding cake topper
wedding caketiktokwedding cakeviralOct 12, 2022 Love Island star shows extent of how far influencers edit photos
Love IslandOct 11, 2022 Steven Seagal describes Putin as one of ' greatest world leaders'
steven seagalOct 10, 2022 Lizzo wears empowering shirt after being fat-shamed by Kanye West
lizzoOct 10, 2022 14 of the worst things the Tories did this week
liz trussOct 08, 2022 A lettuce just outlasted Liz Truss' stint as prime minister
Liz TrussOct 20, 2022 Newsnight guest says ' you can' t treat mortgages like prime ministers'
Liz TrussOct 20, 2022The Conversation (0)